Inside the failed courtship between Kenya BNLP startup Lipa Later and Nigeria’s Klump
- Klump was introduced to Lipa Later by an investor, leading to discussions about a potential acquisition.
- Lipa Later had recently raised $12 million and was looking to expand its operations across Africa.
- During due diligence, Klump requested financial documents from Lipa Later, which were not provided, causing the talks to stall.
The failed acquisition talks between Klump and Lipa Later highlight the challenges faced by BNPL startups in Africa, particularly regarding transparency and financial stability. The rapid decline of Lipa Later raises concerns about the sustainability of the BNPL model in emerging markets, suggesting that investors should exercise caution when evaluating such opportunities.
